Ending License Dispute Clears the Way for Advancing Electronic Distribution

SUNNYVALE, CA – June 2, 2014 – Kaleidescape, Inc., the market leader in movie servers, and the DVD Copy Control Association, Inc., the licensor of CSS (Content Scramble System), today announced an agreement to jointly end a decade-long lawsuit, paving the way for Kaleidescape to become the de-facto platform for high-resolution content delivery.

Kaleidescape and the DVD CCA jointly settled the case in the 6th District of the California State Court of Appeal and the Superior Court of Santa Clara County. Under the settlement terms, Kaleidescape agreed to drop its appeal of the superior court injunction, which has been stayed by the Court of Appeal since 2012. DVD CCA and Kaleidescape have agreed that Kaleidescape will be subject to the injunction starting on November 30, 2014. Systems sold by Kaleidescape after that date will no longer be able to import CSS-protected DVDs, and such DVDs will only be playable from the physical disc. It will still be possible to play a physical DVD starting at the beginning of the feature, or jump directly to a favorite scene or song.

Pursuant to the settlement agreement, the superior court at the request of Kaleidescape and DVD CCA modified the injunction to provide that it takes effect November 30, 2014. This permits Kaleidescape to continue selling systems that import CSS-protected DVDs through November 29. By then, Kaleidescape expects to have most DVD movies available for download from the Kaleidescape Store in the United States. For markets outside the United States, the Kaleidescape system will be sold after November 29 as a Blu-ray movie server only.

“This agreement is a watershed moment for Kaleidescape. Electronically delivered movies are the future of home video. This agreement allows us to focus on creating the future of digital content ownership,” said Cheena Srinivasan, founder and CEO of Kaleidescape. “As the most trusted brand among home theater enthusiasts, who purchase far more movies than the average consumer, we are committed to delivering the best products and services for the most entertaining and immersive movie-watching experience at home.”

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Kaleidescape is the ultimate movie platform. Kaleidescape has been designing, manufacturing, and selling state-of-the-art movie players and servers for over 20 years. Kaleidescape digitally delivers movies with lossless audio and reference video. Headquartered in Silicon Valley, Kaleidescape builds its products in the USA.

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